Economics · International Trade Theories
Which of the following statements best explains the Theory of Comparative Advantage in international trade?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Imports are restricted to shield domestic infant industries
- 2Trade occurs only when trading nations possess equal resource endowments
- 3A country specializes in producing goods that have the lowest opportunity cost✓
- 4A country exports goods in which it has absolute cost advantage
Correct answer
A country specializes in producing goods that have the lowest opportunity cost
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice International Trade Theories MCQs →Want more practice questions on International Trade Theories?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · International Trade Theories